NEW YORK — Pinning hopes of a turnaround on better predictions of consumers’ desires, Tropical Sportswear International Corp. created three new business units charged with easing the company’s transition from manufacturer to marketer.
The Tampa-based apparel company named three senior executives Tuesday to head its newly created branded, private brand and mass merchant strategic divisions.
“We really have three different businesses,” Tropical’s chief executive officer, Michael Kagan, told WWD. “And we feel each has their own strategies and own business plans and should be handled differently.”
This is the latest in a series of efforts to reposition the company, which fired three of its top executives a year ago, missed delivery deadlines during the holiday season and suffered losses totalling $130 million at the end of fiscal year 2003.
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To cut costs, Tropical this year sold a vacant Tampa administrative building that had been slated to be its corporate headquarters. The company also hustled to reduce its backlog of inventory by $50 million and moved the last of its fabric-cutting operations from the U.S. to Honduras and the Dominican Republic.
Last month, Tropical announced a revolving credit facility, allowing the firm to borrow up to $60 million at reduced rates. Tropical is hoping to reassure its retailers and consumers alike that the company will persevere.
Acknowledging that some of its apparel, such as its pants department, had grown “boring,” Kagan says Tropical is jumping head first into intense, nationwide market research.
“Years ago, you came out with a winning style, you had a home run for three years,” Kagan says. “Now a home run may be 18 months. It’s a shorter cycle now, so we’ve got to continue to be innovative. You have to stay as close to the consumer as you can.”
All three of the senior executives — John T. Berg Jr., Frank D. Keeney and Steven S. Barr — are being promoted from within Tropical.
Berg was named senior vice president, general manager of the branded division, which includes the Savane, Farah and Banana Joe brands. Most recently vice president of sales for the Savane division, Berg had held various sales positions with Tropical since 1994.
Keeney was tapped to head the private brand division, which includes Bill Blass and Van Heusen. He has also served as senior vice president of sales for the private brand and Duck Head divisions.
Barr, who has been with Tropical since 1989, was named to the top spot of the mass merchant division, which includes St. John’s Bay, Izod and Geoffrey Beene. He has served as senior vice president, sales and marketing, as well as vice president of sales for Farah Inc.
“The depth of experience these three individuals possess is impressive and will be supported by market research and product innovation,” Tropical president Richard J. Domino said in a statement.